Reverse Mortgages-Helping Seniors Stay in their existing home or purchase a new home

What is a reverse mortgage?

A reverse mortgage is a home loan (used for any purpose) where seniors, 62 and older, can access the equity (cash) built up in their home.

There are several different reverse mortgage programs. Fannie Mae Home KeeperŪ, Jumbo Cash-Out loan, and the HUD-insured Home Equity Conversion Mortgage (HECM) are three such programs. As demand increases, more reverse mortgage programs from different organizations will become available.

It is called a reverse mortgage because you borrow money from a lender, but the lender makes monthly payments to you, rather than you making monthly payments to the lender. All interest is paid at the end of the loan, rather than in the beginning.

What are some of the benefits of a reverse mortgage?

As the homeowner receives monthly cash income, the loan balance increases. In the following twelve-month example, the homeowner begins with a debt-free home. As money is received by the homeowner, the mortgage grows. By the end of month twelve, the homeowner owes the bank $6,000 plus $232.44 interest. All Reverse Mortgage loans have a variable rate.

Assumptions*

Regular monthly advances $500
Annual interest rate 7.0 %
Monthly interest rate .583% (.07 / 12)

Month Beginning Balance Interest Ending Balance Cash Disbursement
0 0 0.00 0.00 $500.00
1 $500.00 $2.92 $502.92 $500.00
2 $1,002.92 $5.85 $1,008.77 $500.00
3 $1,508.77 $8.80 $1,517.57 $500.00
4 $2,017.57 $11.77 $2,029.34 $500.00
5 $2,529.34 $14.75 $2,544.09 $500.00
6 $3,044.09 $17.76 $3,061.85 $500.00
7 $3,561.85 $20.78 $3,582.63 $500.00
8 $4,082.63 $23.82 $4,106.44 $500.00
9 $4,606.44 $26.87 $4,633.31 $500.00
10 $5,133.31 $29.94 $5,163.26 $500.00
11 $5,663.26 $33.04 $5,696.29 $500.00
12 $6,196.29 $36.15 $6,232.44 $500.00

*Many criteria are considered when determining the reverse mortgage loan amount, interest rate, etc.

Consider the following:

REVERSE MORTGAGE FOR HOME PURCHASE

 

AVAILABILITY/GUIDELINES SUBJECT TO CHANGE AT ANY TIME

 

NO INCOME OR CREDIT REQUIRED-NONE!!!

 

Do you have clients who are 62 or older and want to purchase a new/existing home?

  -Purchase Home Value must Appraise is established by the lender.

-Owner-occupied single family homes, planned unit developments, condominiums, and 1-4 unit homes 

-Buyer’s down payment is based on their AGE  Buyer receives a reverse mortgage loan for the balance of the purchase price.  

THERE ARE NO PAYMENTS WITH A REVERSE MORTGAGE!!!

 

 New Home & No Payments!!!!  

If you are looking for ways to expand your market, this is a great new product that will help you work with more buyers. Patti Mazzara MMS, Vice President

Venture Development, Inc. – Calgary’s Premier Mortgage Broker www.ventureloanapp.com   Office:  952.285.4319  Cell:  612.237.6277